Which of the Following Is a Tax Benefit Associated with 401(k)plans

question 14

Multiple Choice

Which of the following is a tax benefit associated with 401(k) plans? (401(k) Plans)

• A)Employees pay taxes on their contribution
• B)Employees do not pay taxes on their contributions
• C)Investment gains are taxed
• D)Employees cannot deduct their contributions from taxable income

---

Definitions:

Registered

Officially listed or recorded by an authority to acknowledge legal status or compliance.

Equity of Redemption

Equity of redemption is the legal right of a mortgagor to reclaim their property after having paid off the full amount of the mortgage plus any interest and costs due.

Unregistered Mortgage

A mortgage that has not been formally registered with the relevant legal or governmental registry, potentially affecting its enforceability and priority.

Mortgage

An agreement made between a debtor and a creditor in which the title to property of the debtor is transferred to the creditor as security for payment of the debt.